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Latrobe * ASX Magnesium ANNOUNCEMENT QUARTERLY ACTIVITIES REPORT 30 June 2021 LATROBE MAGNESIUM PROJECT 1. EPCM On 26 June 2021 , Latrobe Magnesium Limited ( LMG ) officially awarded the Engineering Procurement & Construction Management ( EPCM ) contract to Mincore Pty Ltd ( Mincore ) for the development of its 3,000 tpa Magnesium Demonstration Plant which will be built in Hazelwood North , Victoria . The plant will produce magnesium metal from a fly ash a waste stream from brown coal power generation - to demonstrate LMG's resource process . - LMG has invested in several years of research and development to produce a patented process for extracting magnesium from magnesium rich resources . Using this process , the magnesium will be extracted from the fly ash using a world - first hydrometallurgical extraction / thermal reduction process which includes the production of valuable by- products and minimises wastage . The current annual demand for magnesium is approximately one ( 1 ) million tpa and is projected to double over the next few years . Mincore has worked with LMG through several stages of feasibility studies to take the project to a stage where a demonstration plant of 3,000 tpa is now viable . Following commissioning of the 3,000 tpa demonstration plant , LMG will seek to gain economies of scale by moving towards a commercial scale operation and producing up to 40,000 tpa for the growing global magnesium market . Mincore has already completed several tasks for LMG being : surveying of the site and the tendering of some early works for fencing , administration block improvements and electrical works ; tendering of the plant's long lead time equipment item ( the spray roaster ) worldwide ; and completing a value engineering exercise by conducting some 30 individual studies . Mincore is currently assessing these tenders and these works will be awarded within the next month . Mincore has now commenced the detailed engineering and design for LMG's demonstration plant . Latrobe⭑ * Magnesium Suite 307 , 20 Barrack St , Sydney NSW 2000 | Postal Address : GPO Box 4729 , Sydney NSW 2001 | ( 02 ) 8097 0250 | Img@latrobemagnesium.com | Latrobe Magnesium Limited | ABN 52 009 173 611 | www.latrobemagnesium.com